Personal Insurance

How Condo Insurance Protects You & Why You Need It

What is condo insurance?

Condo insurance is not the same as homeowners insurance. The main difference between homeowners and condo insurance is the amount of coverage you will need. Homeowners insurance should cover the cost to rebuild your home and other structures on your property. Condo insurance covers the cost to rebuild the interior of your unit.

As a condo owner, you’re likely part of a condominium or homeowners association (HOA). The association’s insurance policy will typically insure the structure of the building and common areas.

Why you need additional insurance coverage.

Condo association insurance does NOT cover the inside of your actual condo, including personal possessions. In the condo insurance world, you need what’s called an HO-6 policy.

What is an HO-6 policy and what does it cover?

An HO-6 insurance policy is homeowners insurance for co-ops and condominiums. Townhomes can also be insured on an HO-6 policy, but in some cases they may be insured with an HO-3 policy instead.

The HO-6 policy provides coverage for the following:

  • Interior of your condo (walls, carpet, cabinets, countertops, etc.).
  • Personal property (furniture, clothing, jewelry, etc.).
  • Liability protection.
  • Reimbursement for additional living expenses when a covered loss prevents you from living in your home.
  • Pays for covered damages to additions, alterations, fixtures, improvements, or installations that you make to your residence.
  • Helps pay for covered damages or bodily injury if an accident occurs in your home.
  • Helps cover payment for medical or funeral costs for someone who is injured on your property.
  • May also help pay for assessment fees charged by your association after a covered loss. (See next section regarding “loss assessments.”)


What is loss assessment and how does it work?

Loss assessment is coverage that is part of condo policy form. If a loss occurs to the building or common areas of your condominium and your condo association doesn’t have enough insurance coverage, they can charge you a fee to help cover the difference. If this happens, your personal condo policy would pay up to the limit toward your shared cost.

Loss assessment coverage is important because it helps protect you from unexpected expenses that may arise due to damages or issues related to the structure of your building or the common areas your condo is part of. This coverage also provides you with a layer of financial protection if your homeowners association does not have adequate insurance or has a very high deductible to save money.

Always check contracts and bylaws in your condo association to make sure you have the right kind of condo insurance for your needs.

Are you ready to take the next step? Contact your Leavitt Group insurance advisor to learn more about how a condo insurance policy can protect you and provide peace of mind.

Leavitt Group—national strength, local trust. Leavitt Group is the 14th largest independently held insurance brokerage in the United States. We pride ourselves on our experience and ability to help our clients succeed. Contact an agency near you